Generally, I don’t like to think about trading over the weekend. But towards the later part of Sunday I often start thinking about things. Sometimes, these thoughts and ideas are really compelling. So I began to note them down. Every now and then I write down 2 or 3 golden points from my thought processes over the week and the weekend.
Here I’d like to share some with you on every Sunday.
1. The Place for Stop Loss is Always the Same
Within a trend no matter where you enter, whether breakout of box or pullback … the market generated stop loss will always be the same
Trader Management is always the same. No matter where was your entry. You still have to manage the trade exactly as the market tells you to do.
“You should be able to answer this question instantly at any given time of the day.”someone from the internet
If you look at a chart and someone asks, suppose you were in this market, where will be your stop now?
For Example. e.g. If you’re trading the Setup 1 strategy and you are looking for Tz1. Whether your entry is early way up there near the purple, whether you entered on apple or pc or inside the box or break of the box or slightly late past wave 3… your Trade management will be the same… the later you enter, the wider the stop, the wider the stop the lower the lot size. You will have to manage your trade based on the information generated by the market. If price action trading, then the current price action decides it. If trading with indicators, the current indicators and the time frame dictate trade management.
2. NO GAIN WITHOUT PAIN
Get yourself to USED to experiencing the PAIN and the BURN. It happens on both sides of the Entry price. Whether you’re losing money or making money there is pain involved. Don’t learn to avoid pain. Learn to accept the pain and live with it.
3. Day Traders should always be looking to learn to get Bigger Lot Sizes
Learn and Train yourself to GET BIGGER …. forget 1% per trade… start from .25% and continue to increase your lot size. Keep going higher and higher. and don’t rely on scalping only. Learn to let your trades RUN…. get to 1:5 and 1:10 trades.